12th Nov 2020 10:03
(Alliance News) -Â WH Smith PLC on Thursday said it was a "challenging" year, as a strong first half was followed by the outbreak of Covid-19.
Revenue for the financial year ended August 31 fell 27% to GBP1.02 billion from GBP1.40 billion the year before, and the stationery and magazines retailer swung to a pretax loss of GBP280 million from a profit of GBP135 million.
Its travel unit - with shops in train stations and airports, as well as hospitals - posted a trading loss of GBP27 million for the year, swinging from a profit of GBP117 million. The High Street arm posted a trading loss of GBP4 million versus a profit of GBP60 million.
Covid-19 has had a "significant impact" on the group, particularly in the second half of its financial year. As lockdown restrictions have eased, WH Smith said it has seen a "gradual" recovery.
In April, group revenue was running at just 17% of 2019 levels, though this steadily improved to 59% in October.
"The group delivered a strong first half performance and traded strongly prior to the outbreak of Covid-19. Since March, we have been heavily impacted by the pandemic. Despite the many challenges faced, we responded quickly and took decisive actions to protect our colleagues, customers and the business, including strengthening our financial position," said Carl Cowling, chief executive.
"While passenger numbers continue to be significantly impacted in the UK, our North American business, where 85% of passengers are domestic, is beginning to see some encouraging signs of recovery. In addition, we continue to open new stores in the US and win significant tenders across major US airports," said Cowling. "In High Street, we had seen a steady recovery and we were well set up both in stores and online as we went into the second lockdown."
Shares in WH Smith were flat at 1,450.00 pence in London on Thursday. The stock has dropped 44% in the year-to-date.
By Lucy Heming;Â [email protected]
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